On Monday, May 23, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The operation was conducted the following day and attracted bids from euro area eligible counterparties of €60.20 billion, €10.26 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00 per cent, in accordance with current ECB policy.
On Wednesday, May 25, the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The auction attracted bids of €6.27 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on Wednesday, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.80 billion, which was allotted in full at a fixed rate of 0.85 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills, maturing on August 25 and November 24. Bids of €53 million were submitted for the 91-day bills, with the Treasury accepting €12.40 million, while bids of €45 million were submitted for the 182-day bills, with the Treasury accepting €2 million. Since €28.80 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €14.40 million, to stand at €338 million.
The yield from the 91-day bill auction was -0.215 per cent, down by 0.8 basis point from bids with a similar tenor issued on May 19, representing a bid price of 100.0544 per 100 nominal.
The yield from the 182-day bill auction was -0.210 per cent, down by two basis points from bids with a similar tenor also issued on May 19, representing a bid price of 100.1063 per 100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today the Treasury will invite tenders for 91-day and 182-day bills maturing on September 1 and December 1, respectively.